If You're Having Trouble Paying Your Bills

If you know that your bill payment will be late, you should call or write the business or company and explain why. Businesses are sometimes more understanding if you let them know about your situation. But no law says that creditors have to be understanding. When you purchase something and agree to pay a certain amount each month, the business does not have to let you make late or smaller payments.

Call or write to the company you owe as soon as you know your payment will be late. They may work with you, but they are not required to accept smaller or late payments.

Even if your reason is good, they can still insist you pay in full as originally agreed.

Most businesses do not have to accept smaller or late payments, even if you have a good reason. If you contact them, they may agree to it, but they may not. 

Sometimes, a company that you owe will agree to a new payment plan. If they do, get the agreement in writing, and make sure it says they will not sue you as long as you make the agreed payments.

Government loans: If you have a loan supported by a government program (for example, from the U.S. Department of Agriculture, Housing and Urban Development, Veterans Affairs, or a federal student loan), there may be special rules and options that help protect you. Contact the agency in charge of your loan or talk to a lawyer to learn more about these protections.

Check if you have health insurance coverage. If you have the Oregon Health Plan, make sure you tell the hospital or clinic when you receive care.

Ask the hospital or clinic if they have financial assistance programs (sometimes called “charity care”) for patients with low incomes. Keep copies of any applications you submit. If you are on the Oregon Health Plan, the hospital or clinic should not bill you for costs that the health plan will pay. Even if you did not tell them at first, you can still have the Oregon Health Plan cover the bill if you let them know within one year of treatment.

If a divorce order says your former spouse must pay certain medical bills for your children, ask the hospital or doctor to send the bills to your former spouse.

If you signed a written agreement with the hospital or doctor, they can charge the interest rate you agreed to. If you did not sign an agreement, interest is limited to 9%.

If you owe money to a state-operated hospital, such as Oregon Health & Science University (OHSU), the government may take your state tax refund to pay the bill if you do not follow a payment plan. 

A credit counseling agency might help you negotiate smaller monthly payments.

Look for reputable nonprofit credit counseling agencies approved by the U.S. Department of Justice. Ask them about all their fees before signing any agreement. 

Oregon's Department of Financial Regulation has this brief guide on finding help. 

Be careful with high-interest loans, like payday or car title loans. Rolling them over can quickly increase what you owe, making it even harder to get out of debt.

If you cannot reach an agreement, the creditor may turn your bill over to a company specializing in debt collection, repossess (take back) the item, or take you to court. 

//Learn more about debt collection and dealing with debt collectors in this guide.

//Learn more about court cases and decisions related to debt in this guide.

If a court decides in favor of the person or business that says you owe money, they may be able to get money from your paycheck or bank account or take other steps to collect the debt.

Go here to learn more about when a debt collector can take money from your paycheck or bank account.

If you believe the amount is wrong, contact the business or company that you owe the money to (or that sent you the bill if the name is different). Send them copies of any proof you have that the bill is incorrect, such as receipts or canceled checks. Keep copies of all communications.

Simply writing “paid in full” on your check usually does not resolve the issue.

If you believe a product or service was misrepresented to you (for example, you were told it was new, but it was actually used) or if you think an ex-spouse should be paying the bill, consider talking to a lawyer. //See below for where to find legal help. 

Nonprofit credit counseling agencies can often help people manage problems with bills, collections, and debt. Oregon's Department of Financial Regulation, a government agency, has a general guide for finding a reliable credit counselor. Read their article here.

You can also search our legal directory for free and low-cost legal services here.

If you want to speak with a private lawyer, contact the Oregon State Bar Lawyer Referral Service to get referred to someone who may be able to help.